Savings Account Trust (Noun)
Meaning
A savings account deposited by someone who makes themselves the trustee for a beneficiary and who controls it during their lifetime; afterward the balance is payable to the previously named beneficiary.
Classification
Nouns denoting possession and transfer of possession.
Examples
- She decided to set up a savings account trust to save money for her niece's future education expenses.
- The new savings account trust laws allowed grandparents to create tax-free accounts for their grandchildren.
- Under the terms of the savings account trust, the money would be transferred to his son's name when he turned twenty-one.
- Her parents created a savings account trust when she was born, adding to it each month to build up a nest egg.
- A savings account trust is often used as an alternative to a life insurance trust to save for funeral expenses.